NIFTY SET TO ACHIEVE 12700 TARGET

 

NIFTY SET TO ACHIEVE 12700 TARGET

 

WORLD MARKETS

 

Dow rose 0.9% while S & P 500 and Nasdaq fell 0.1% and 1.4% respectively as rotation out of technology stocks into cyclical names, which started after Pfizer and BioNTech said Monday that their coronavirus vaccine was more than 90% effective in preventing infection, continued.

 

Meanwhile, covid situation in the US continued to worsen as the seven-day average of daily new coronavirus cases Monday stood at 108,964, a 37% increase from a week ago.

 

Brent crude futures rose 53 cents, or 1.3%, to $42.93, while WTI crude futures settled up $1.07 cents, or 2.7%, to $41.36.

 

Main European markets gained 0.5%-1.5%.

 

AT HOME

 

Sensex and Nifty surged 1.6% and 1.4% respectively, extending the winning streak to seventh straight day and hitting yet another record high. Sensex added 680 points to settle at 43277 while Nifty finished at 12631, up 170 points. BSE mid-cap and small-cap indices however fell 0.1% and 0.5% respectively. BSE Finance index and Bankex soared 3.9% and 3.7% respectively, becoming top gainers among the sectoral indices while IT and Healthcare indices plunged 3.7% and 3.6% respectively, becoming top losers.

 

FIIs net bought stocks and index futures worth Rs 5627 cr and 2017 cr respectively but net sold stock futures worth Rs 1000 cr. DIIs were net sellers to the tune of Rs 2309 cr.

 

Rupee depreciated 2 paise to end at 74.18/$.

 

BJP led NDA won an absolute majority in Bihar, winning 125 seats.

 

OUTLOOK

 

Today morning, Nikkei is up 1.2%, Hang Seng is flat while Shanghai is off 0.2%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 12700, where a rising trendline adjoining tops made in August 2018 and June 2019 was placed, was the next major target/resistance to eye.

 

Nifty surged to 12643 before closing at 12631.

 

12700, in the vicinity of which, a rising trendline adjoining tops made in August 2018 and June 2019 is placed, continues to be the next major target/resistance to eye.

 

12367-12280, the gap created by Monday’s gap-up opening, continues to be support zone .